Sources inform “Globes” that Hoodies Group is currently in talks to acquire Osnat Jewelry Design, which operates a chain of jewelry stands called Osnat. If an agreement is signed, Hoodies will expand its operations into the jewelry market, and will compete with chains such as Magnolia.
Osnat Jewelry Design was founded by Osnat Raiz, who started out designing gold-filled jewelry. Her first shop opened in 2008, and today she operates 30 branches, most of which are jewelry stands.
According to estimates, the chain has annual sales of NIS 33 million before VAT. The chain has jewelry stands in major Israeli malls, such as 7 Stars Herzliya, G Kfar Saba, Kanyon Rehovot, Grand Beersheva, and others.
Hoodies Group is currently expanding all its areas of operation. It has three chains: the basic fashion chain Hoodies (64 branches), the accessories chain Top Ten (66 branches), and sunglasses chain Carolina Lemke (45 branches) Hoodies Group founder and CEO is Yossi Gabison.
The company’s primary holding is the Hoodies chain, which is the source of most of the group’s estimated sales of NIS 390 million, before VAT. The company is currently expanding the operations of all three chains, by opening new branches, and by expanding existing branches.
A few months ago, Bar Refaeli acquired 5% of Carolina Lemke’s shares, and is also the face of the brand, leading their modeling campaign. Word in the industry is that since Refaeli began leading the campaign, sales have increased significantly.
A source close to the deal told “Globes” that Hoodies Group is “exploring the possibility of a deal. The decision will be made very quickly, and, by Sunday, the group will decide whether it is acquiring the company or not. The group has been conducting due diligence for the past four days. The company has potential. Hoodies Group wants to buy, but not at any price.”
If the negotiations result in a deal, Hoodies plans to expand the chain’s operations by harnessing the group’s manufacturing connections in East Asia, and its size.
Neither Hoodies Group, nor Osnat Jewelry Design, were available for comment.
Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2014
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